Maintain long positions. Riding on bullish sentiment, the COMEX Gold attempted – for second time this month – to breakout above the USD1,927.00 resistance level, following the earlier failed attempt on 12 Oct. Yesterday’s session saw the precious metal open at USD1,911.60, and rise USD24.40 to reach a session high of USD1,936.00. The bulls then took a breather, and closed at USD1,929.50. With the RSI momentum reading at 52.9%, we expect to see follow-through action in the coming sessions. Should the precious metal continue to trade above USD1,927.00, it will test the next resistance level of USD1,950.00. The downside support level should not be breached. Premised on this, we maintain our positive trading bias.

We recommend traders stick to long positions. We initiated these at USD1,903.20, or the closing level of 29 Sep. For risk-management purposes, we raise the stop-loss to USD1,892.70, which was the low of 15 Oct.

The immediate support is marked at USD1,892.70, and followed by USD1,880, which was 28 Sep’s low. On the upside, the next resistance point is eyed at USD1,950, followed by USD1,968.20, or the high of 18 Sep.

Source: RHB Securities Research - 22 Oct 2020